Source www.trendwatch.co.uk 1 September 2004

January 14 2005 is a date that will soon be engraved on the hearts of anyone managing or owning any insurance company, large or small. On that day, almost all general insurance companies, including insurance brokers, will be regulated by the FSA.

Trendwatch publications is, of course, also regulated by the FSA. As a media business, compliance with the massive FSA rule book is considerably less onerous than it is for business that hold client money for investment or insurance purposes. Even so, grappling with the FSA can be like mud wrestling a multi-headed hydra.

To give one small examplee, we recently found out that, to add letters Ltd after ourname )no other changes to the business whatsoever) requires the completion of between 50 and 60 pages of forms and the preparation of much other supporting documentation. The FSA will not even deign to look at it unless it is accompanied by a cheque for 1,500. If everything then seems to be in order, the FSA undertakes to deal with the matter within 6 months.

If, in our infinte naivete, we had failed to realise this palava was a legal requirement, the MOther of All Parliaments has decreed that we would be committing a criminal offence, and liable to be detained at Her Majesty's pleasure at a house of correction and her learned judge's choosing.

This is what the FSA regards as'light touch' regulation which minimises disruption and cost ot businesses.

Now imagine how tricky things can get if you attempt something really complicated such as taking on a member of staff.

The FSA estimates that it already has about 10,000 in the mortgage and general insurance field by the short and curlies. It estimates that at least another 10,000 business will be dragged kicking and screaming into the brave new world of 'light touch' regulation. Around 2,500 insurance brokers will be lightly touched by the FSA on January 14.

But, as everything in life, one mans Kafkaesque nightmare is another man's business opportunity. Which brings us to Broker Network Holdings (BNH)

BNH floated on AIM as recently as May this year (raising 2m in the process), so most investors will know little about it, if indeed they've heard of it atall. We're recommending it because we feel that burgeoning profitability will soon make it a lot better known.

As the name suggests, BNH exists to build a network of independent insurance brokers, all operating within the BNH framework. This follows a path wellbeaten by IFA's, accountants and dentists. BNH is the longest established player in its field and believes that it has a stronghead-start, and a great deal more credibility than other 'me too' imitators.

The system works like this: as an independent insurance broker, you undertake to pay 95 a month to BNH. You also undertake to pass all your insurance business premiums through BNH. BNH places the insurance business with the giants such as AXA, Norwich Union, Royal and Sun Alliance and Cornhill. The members receive enhanced commission from the insurance companies because of the preferential status granted to BNH. Since BNH deals with the placing of the insurance, this greatly reduces the credit risk of the individual members.

BNH takes 1.5% of the premiums from its members and, in return, provides members with a number of valuable support services, including access to Lloyds of London, centralised back-office IT support, marketing assistance, access to e-commerce, staff training and development, business management and monitoring... and FSA compleance support.

BNH is also prepared to purchase broking firms outright where the opportunity presents itself. There are believed to be a large number of small owner-managed brokers where the owner is approaching retirement. For many of them selling theri business to BNH, typically for around 0.3m, rather than grappling with the FSA, is probably an attractive option. So far BNH has acquired 9 such brokers.

Since it was founded in 1994, it has absorbed 133 brokers into its network and plans to acquire about 90 more over the next 5 years. Out of the estimated 19bn paid in insurance premiums in the UK every year, an est 80% is handled by insurance brokers. Most of this goes to through the big brokers, but about 3bn a year (typically commercial rather than personal business) is processed by the 2,500 small so-called 'community brokers' that form the BNH network.

hat represents the extent of BNH's market pond.

At time of floatation, BNH est that no more than 12% of its target broker had aligned itself with any particular network. Clearly there's plenty of scope for growth.

The company is already profitable. Its last full year results were published in July and showed a profit for the principle trading subsidiary - the PLC holding company had not yet been created - of a record 0.77m up rom 0.70m. 27 new members were taken on.

Brewin Dolphin reckons it will make 1.77m this year, rocketing to nearly 3m in 2005-06. If these estimates are correct, it puts BNH on a forward p/e of 6, which is extremely low for the sector, especiallyfor a company whose profits are growing at such a rapid rate

BUY

Hello, good announcement the other day i felt.

Apparently 6 institutions bought the stock. All the holders that own over 3 percent have now notified the market which surprised me quite a bit.

Hope this helps.

Apparently according to another poster on another bb, they report end november. So hopefully a trading statement in the closed period i.e. beginning november.

The company recently said company growth was in line with expectation.

I'm sure this will touch 1.50 but not sure when or even this year! Good company, good results but very illiquid. If this stock is difficult to buy, then many potential investors will be put off and place their funds elsewhere - I think this is the main reason the SP has not really moved since the latest positive RNS.

Good luck to all investors.

Good to see posters back on here... totally agree ramu, fantastic company. Last night i really looked through the last results again.... the cash that they are making is being used to buy aquisitions. You would hope/think that they are profitable and will feed through over the next year or so. The larger BNH gets the greater discounts it will get for its brokers with the insurers. This will only be good for attracting new business. This company will always generate cash imho, so long it does that and uses it wisely then we will be ok. Just a shame about the short term share price.

It started to perform strong approx a year ago. It should hopefully do the same this year and the run up to christmas all being well.

I think so legend. Have to be honest I was gettin a little bored with this investment for a while. But I am not selling for the sake of it. I will remain long until how long it takes.

It is good to see 25k buying today to mop up the sell earlier on during the week.

Yes wraz, mms must be laughing their socks off picking up that stock at 82p... Wish i could pick up the stock at that price.

Lets hope good news is in the waiting...

As I have always said, I can't see why anyone would want to sell at this price...

Keep the bb alive everyone..

Buyers around again....

Someone after stock me thinks before results...

1.06 in the middle now... things seem positive here now. mms absorbing stock at 1.045. I see no reason to sell now. Will wait to see what the results will be like. Wouldn't have thought any nasty surprises imho.

I would expect to see member numbers at their highest and likely increases in profit.

All imho of course. Good luck all

I think this will fly soon....

RNS Number:9967T Broker Network Holdings plc 11 November 2005
Broker Network Holdings plc ("The Company")
Notification of Interest
11 November 2005

By a letter dated 9 November 2005, the Company was notified that AXA S.A., of 25 Avenue Matignon, 75008 Paris and its Group Companies have a non-beneficial interest in 1,650,000 ordinary shares of 2p each in the Company (representing 10.95 per cent. of the total number of ordinary shares in issue).
END
This information is provided by RNS
The company news service from the London Stock Exchange
END


HOLIIFSALDLLLIE

Today's RNS is confirmation of further institutional interest. Investors are confident in the progress of BNH and this should drive up the SP. However, I wouldn't put it pass their PR company to mess up this good RNS ........

Absolutely agree. AXA having an interest in BNH can only be a good thing for the company imho

Seems positive...


BROKER NETWORK HOLDINGS PLC

(AIM:BNH)


Broker Network Receives Full Lloyd's of London Accreditation



Broker Network Holdings Plc ("Broker Network" or "the Company"), the network of
independent community insurance brokers, has today announced that it is the
first network to have gained full Lloyd's of London accreditation, which is
effective from 1st December 2005, replacing the provisional accreditation it has
held for the past three years.



The full accreditation has been awarded to Broker Network London Markets ("BNLM
"), a subsidiary of Broker Network Holdings Plc, which operates from offices in
the Lloyd's building in London.



BNLM is one of only 162 brokers in the world with direct access to Lloyd's.
Brokers can only join Lloyd's by invitation and initially this is on a
provisional accreditation basis. A further three years of successful trading is
required to become a fully accredited Lloyd's broker and during this time, each
broker is required to demonstrate an understanding of the Lloyd's market. As
part of the assessment they must also place a certain amount of business through
Lloyd's.



Commenting on the accreditation, Grant Ellis, Chief Executive of Broker Network,
said:

"Becoming fully accredited to Lloyd's is a tremendous achievement for Broker
Network and Broker Network London Markets. This accreditation will allow BNLM to
continue to use their specialist knowledge to negotiate competitive terms and
conditions for clients and further endorses our position as a reputable broker.
Our network model continues to grow and we remain confident in the level of
acquisition enquiries."

-ENDS-

I hope everyone got the network news from Broker Network. I thought it was very positive, especially now 150 members have been reached.

SP still way below what I want from my investment.

Results will I am sure send this one this time. Newsflow has certainly improved.

Keep holding and buying imho.

wraz

Fantastic news imho

Trading Statement

RNS Number:0156V
Broker Network Holdings plc
02 December 2005

2 December 2005

For immediate release



BROKER NETWORK HOLDINGS PLC
(AIM: BNH)


TRADING UPDATE



Broker Network Holdings Plc ("Broker Network" or "the Company"), the network of
independent community insurance brokers, today announces that the financial
results for the half year to 31 October 2005 are expected to exceed current
market expectations. This is as a result of strong trading across the Company's
operations combined with a one-off improvement in contract terms with insurer
partners.



The detailed interim announcement of the results for the six month period will
be made on 13 January 2006. An analyst briefing will be held at 09.30am and a
press briefing at 11.00 am at Buchanan Communications Ltd, 45 Moorfields,
London EC2Y 9AE. Please contact kelly-annf@buchanan.uk.com to register your
attendance.



-ENDS-

I would have thought there would be more reaction than this...

Very positive news on friday... I really think that this was the bit of info that truly confirmed to me that this co is sound as a pound or as sound as 2 if they keep going!!!

Totally happy to be in for the ride....

With a p/e of 15-30 and projected eps of 10.5p, the SP should be anywhere between 1.575 and 3.15

Still not late to get in and, for existing holders, to top up.

I would agree 1.50-2.00 at present, who knows what the future holds??!! ;-)

As always time will tell,

Regards

Legend

Merry Xmas everyone. It has gone quiet on here. I think a bit of profit taking after the recent trading statement.

I am still fully invested and will be for as long as it takes. These are a good solid company with better than expected results

Buyers around for this... perhaps mms have a seller.... can't see why anyone would want to sell these given the recent trading statement. Can't wait until 13 jan to see how well the co has done.

legend,

If you are planning to top up, don't wait until 13 Jan. I think SP is muted but not for long. You cannot keep a good company off the radar for too long. The press will pick BNH soon as a sound investment. Not sexy but that's down to their PR dept! Merry Christmas and Happy New Year to all investors, traders, rampers, derampers and BB contributors.